Capital One to offer co-branded Costco credit card in Canada

TORONTO (Reuters) - Costco Wholesale Corp, which will stop accepting American Express Co cards in Canada beginning in the new year, will be partnering with Capital One Financial Corp, the credit card issuer said on Thursday.

Members can sign up for a co-branded Platinum MasterCard, Capital One said in a statement, adding that MasterCard Canada has also entered into an agreement with Costco Canada to open credit card acceptance to MasterCard cardholders.

Costco, which sells everything from jewelry to fresh produce at its cavernous members-only stores, notified customers on Wednesday that it would not be renewing its relationship with American Express once it expired on Dec 31.

Bloomberg reported the news earlier.

Warehouses and gas stations located in the United States will continue to accept American Express cards in the new year, according to the letter to customers, except for the TrueEarnings and American Express Platinum Cash Rebate cards issued in Canada.

Costco operates 88 stores in Canada, according to the company website. It has 468 warehouses in the United States and Puerto Rico, and dozens more internationally. Costco partners with Visa in Taiwan.